Gresham's Law and Bitcoin | Shift Frequency

Gresham’s Law and Bitcoin. June 22, 2018 June 21, 2018 ~ admin. Charles Hugh Smith – Rather suddenly, the state issued fiat currency bolivar lost 99% of its purchasing power. Gresham’s law holds that “bad money drives out good money,” meaning that given a choice of currencies (broadly speaking, “money” that serves as a store of value and a means of exchange), people use Gresham’s Law And Bitcoin. Gresham’s Law states that “Bad money drives out good money.” Sounds odd if you’ve never met it, but what it means is that if one currency holds its value and While attempts to apply Gresham’s law to Bitcoin could be instructive, it fails to apply because the principle catalyst of Gresham’s law — that is, that two currencies of different intrinsic value are treated to have equal purchasing power — does not exist with Bitcoins due to the very mechanisms which allow its value to fluctuate as a commodity. Bitcoin, no matter how good it is at making payments will still continue to be hoarded until fiat is no longer in circulation. Gresham's law in action. This is where the store of value properties of bitcoin will be derived from. Just something to ponder.. Bitcoin & Gresham's Law - the economic inevitability of Collapse Philipp Güring & Ian Grigg October-December 2011 Abstract. The Bitcoin economy exhibits remarkable and predictable stability on the supply side based on the power costs of mining. However, that stability is challenged if cost-curve assumption is not solely expressed by the fair cost of power. As there is at least one major

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